South Africa-based coal producer Coal of Africa (CoAL) has announced its financial results for the second first half of 2012, reporting a net loss of $111.7 million compared to a net of $74.7 million in the corresponding period of the previous year.
For the given period, the revenues of CoAL decreased by 39 percent year on year to $87.77 million, partly due to lower coal prices, as well as due to a fall in production as a result of a strike during September 2012 which led to lower sales volumes. The company registered an operating loss of $119.02 million in the second half of 2012, compared to an operating loss of $77.4 million in the second half of the previous year.
According to CoAL's statement, the key development of the period in question was the strategic partnership agreement signed with China-based coal producer Haohua Energy International (HEI), a wholly-owned subsidiary of Beijing Haohua Energy Resource (BHE), through an equity placement of $100 million. The partnership with HEI has significantly strengthened the financial structure of the company, which will aid in the development of CoAL's projects.
CoAL stated that the Makhado coking and thermal coal project has been confirmed to have the potential to produce hard coking coal. The company is also continuing discussions with various financial institutions to secure new short- and long-term debt facilities. In addition, finalization of the Vele coal product trials is required in order to complete the phase two capital program.